According to a new report, the Bay Area region is the most expensive place in the world to build an apartment building, office tower, hospital, warehouse or school. The Bay Area was a full 13% more costly to build in than New York City. Which is second on the list.
The Bay Area shot ahead of New York for the first time last year.
- The average construction cost in the area is $417 per square foot.
- New York City’s is $368 per square foot.
The labor and materials crunch are affecting the residential home building market as well.
It’s another hurdle for Bay Area policymakers as rising construction costs have made it unprofitable for developers to bring homes for low- and middle-income residents to market.